Ahmedabad ITAT Grants Relief to Senior Citizen, Condones 153-Day Delay; Orders Fresh Assessment

On 23 March, the Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) stated that the late filing of a plea by a lady senior citizen constituted a sufficient and reasonable cause and restored the case for fresh adjudication.

A Bench including Judicial Member Suchitra Kamble and Accountant Member Annapurna Gupta condoned a delay of 153 days, stating that the taxpayer’s unawareness of income tax procedures and technology justified the delay. The Bench observed:

“Considering the facts of the case of the assessee being a lady, a senior citizen and a non-filer of the return of income, her explanation that she was totally unaware of the technicalities of the income-tax proceedings and also of the technology used cannot be said to be outrightly false or untrue and merited consideration.”

The case has arrived after the Commissioner of Income Tax (Appeals) and NFAC dismissed the taxpayer’s appeal as non-maintainable due to the delay. The taxpayer claimed that she became aware of the ex parte assessment order only later, after which she engaged a tax consultant and submitted the appeal.

On merits, an addition of Rs 72.20 lakh was made because of the alleged capital gains from the sale of immovable property, considering the taxpayer as having a 1/5th share. The taxpayer claimed that she was only a confirming party and had not obtained any sale consideration.

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The Tribunal discovered merit in her explanation, outlining that, considering her age, background and the absence of exposure to tax compliance systems, no imposition of negligence could be placed on her. It observed that the taxpayer appeared to have a prima facie case on the merits.

“Her reason for the delay in filing the appeal cannot be rejected as not sufficiently explaining the delay in filing the appeal. No laxity can be attributed to the assessee in the circumstances as described above.”

Subsequently, the delay was condoned by ITAT and remanded the case before the Assessing Officer for fresh adjudication after furnishing a sufficient chance of hearing.